Hard Money^Show

Not long ago when private commercial mortgage loans, often called "hard money" loans were easy to get. Property owners who did not qualify for bank financing or who were under sever time constraints needed only to show that a building or tract of land had equity in it. Hard money lenders were happy to issue commercial mortgage approvals based on soft equity alone. Those days are long gone.

Private lenders are swamped with loan requests today. High quality borrowers with 7 figure net worths and strong balance sheets, unable to pry money from their bank anymore, are flocking to private financial entities for desperately needed funding. Thousands of excellent projects and great buildings are in danger of being lost to the credit crunch. Hard money lenders can afford to be choosy; only the best properties and the best deals are getting financed today.

Important Information
The banking group made a $4.8 billion profit in the comparable period last year — although direct comparisons are hard due to the acquisition of HBOS.
Daniels added that the decline in property prices had a significant impact on the group’s results, especially given the concentration of assets acquired through the sale of HBOS. National Hard Money Association

In response to the slowing economy, downturn in real estate values and current "credit crunch" even highly flexible, private "hard money" commercial mortgage lenders have tightened their lending standards and adjusted their criteria.

Pitbull Mortgage School wants to share with you information on commercial hard money. Many lenders will allow fairly large seller carried 2nds or mezzanine loans but total debt consolidation can't exceed 90% of the purchase price or total project costs. The hard money lender will insist that their mortgage be in the 1st position. For loans against quality commercial property, hard money professionals will usually lend up-to 50% of the value of land, 60% on vacant buildings or buildings with insufficient cash flow and 65% on income producing commercial buildings such as multi-family, office or retail.